Sunrise Realty Trust (NASDAQ:SUNS) Announces Earnings Results

Sunrise Realty Trust (NASDAQ:SUNS) issued its earnings results on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.01), FiscalAI reports. Sunrise Realty Trust had a net margin of 53.33% and a return on equity of 8.24%. The firm had revenue of $8.56 million during the quarter, compared to the consensus estimate of $7.17 million.

Here are the key takeaways from Sunrise Realty Trust’s conference call:

• Proposed SRT merger is expected to increase SUNS’s equity base by approximately 60%, improve financing access and trading liquidity, and generate G&A savings. The management agreement would also reduce the incentive fee rate to 17.5% and provide a $1 million fee waiver over four quarters.
• Second-quarter distributable earnings were $0.29 per share, while first-half distributable earnings of $0.65 per share exceeded the $0.60 per share in declared dividends, indicating continued portfolio earnings coverage.
• All loans were current and performing at quarter-end, with a weighted-average portfolio yield to maturity of approximately 12.3%. The Panther National loan repaid in full after quarter-end, reducing debt outstanding from $141.7 million to approximately $85.6 million and creating capital for redeployment.
• Management reported improving multifamily fundamentals in selected markets, including stronger absorption, rent increases and fewer concessions, while identifying a broader pipeline of need-driven structured lending opportunities. SUNS also signed a term sheet for a proposed $93 million senior construction loan for a Texas multifamily development.
• SUNS and its affiliates agreed to sell The Thompson San Antonio, with the buyer having funded $6 million in non-refundable option payments, while SUNS will provide seller financing. Management did not disclose expected loan-to-value or interest-rate terms for that financing.

Sunrise Realty Trust Trading Down 0.6%

Shares of SUNS traded down $0.05 during mid-day trading on Friday, reaching $7.80. 112,199 shares of the stock traded hands, compared to its average volume of 58,318. The company has a market cap of $105.46 million, a price-to-earnings ratio of 8.04, a price-to-earnings-growth ratio of 0.59 and a beta of 1.02. Sunrise Realty Trust has a 1 year low of $7.34 and a 1 year high of $11.78. The firm has a fifty day moving average price of $8.23 and a 200 day moving average price of $8.41.

Sunrise Realty Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.30 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $1.20 annualized dividend and a yield of 15.4%. Sunrise Realty Trust’s dividend payout ratio (DPR) is currently 121.21%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SUNS. Keefe, Bruyette & Woods increased their price target on Sunrise Realty Trust from $7.75 to $8.00 and gave the stock a “market perform” rating in a research note on Monday, May 18th. Weiss Ratings cut Sunrise Realty Trust from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 16th. Zacks Research raised shares of Sunrise Realty Trust from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 28th. Finally, Wall Street Zen upgraded shares of Sunrise Realty Trust from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Sunrise Realty Trust currently has an average rating of “Reduce” and a consensus price target of $8.00.

Institutional Investors Weigh In On Sunrise Realty Trust

Several hedge funds have recently added to or reduced their stakes in SUNS. Vanguard Group Inc. lifted its stake in shares of Sunrise Realty Trust by 19.2% in the 3rd quarter. Vanguard Group Inc. now owns 588,554 shares of the company’s stock valued at $6,115,000 after acquiring an additional 94,628 shares during the last quarter. Corsair Capital Management L.P. grew its position in Sunrise Realty Trust by 407.0% during the 4th quarter. Corsair Capital Management L.P. now owns 50,704 shares of the company’s stock worth $478,000 after acquiring an additional 40,704 shares during the last quarter. Geode Capital Management LLC increased its stake in Sunrise Realty Trust by 8.4% in the 4th quarter. Geode Capital Management LLC now owns 252,711 shares of the company’s stock worth $2,383,000 after purchasing an additional 19,565 shares during the period. Renaissance Technologies LLC increased its stake in Sunrise Realty Trust by 67.3% in the 4th quarter. Renaissance Technologies LLC now owns 47,000 shares of the company’s stock worth $443,000 after purchasing an additional 18,900 shares during the period. Finally, Curi Capital LLC purchased a new position in Sunrise Realty Trust in the 2nd quarter worth approximately $138,000.

About Sunrise Realty Trust

Sunrise Realty Trust is a real estate investment trust (REIT) that focuses on acquiring, owning and leasing convenience store and fuel retail properties under long-term net leases. The company targets sale-leaseback transactions and joint-venture investments with high-credit tenants in the convenience retail sector. Sunrise Realty Trust’s portfolio comprises single-tenant properties that benefit from predictable cash flows, structured lease agreements and tenant-driven site improvements, providing exposure to a segment of the retail real estate market that aligns closely with consumer essentials.

The company’s primary business activities include sourcing and underwriting new property investments, negotiating sale-leaseback and ground lease transactions, and managing asset performance throughout the lease term.